Which that the complying with statements is true?A)The largest investors in corporate bonds space institutional investors such as life insurance money companies and also pension funds.B)The industry for corporate binding is thin compared to the market for this firm stocks.C)Prices in the this firm bond industry tend come be much more volatile 보다 prices the securities marketed in industries with higher trading volumes.D)All that the above are true.

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Which one of the following statements is no true?A)Prices in the corporate bond market tend come be more volatile 보다 the industries for stocks or money market securities.B)Corporate bond are more marketable than the securities the have greater daily trading volumes.C)The market for corporate bonds is thin contrasted to the sector for this firm stocks.D)The largest investors in this firm bonds space life insurance money companies and also pension funds.
Which one of the adhering to statements around vanilla binding is no true?A)They have actually fixed coupon payments.B)The confront value, or par value, for most corporate bonds is $1,000.C)Coupon payments are usually made quarterly.D)The bond"s coupon rate is calculated together the annual coupon payment divided by the bond"s confront value.
Bonds market at a premium once the industry rate of attention is:A)less than the bond"s coupon rate.B)greater 보다 the bond"s coupon rate.C)equal to the bond"s coupon rate.D)None of the above is true.
Briar Corp is issuing a 10-year bond v a coupon rate of 7 percent. The interest rate for comparable bonds is currently 9 percent. Assuming annual payments, what is the existing value that the bond? (Do no round intermediary computations. Round your final answer come the nearest dollar.)A)$872 B)$1,066C)$990D)$945
Which the the complying with statements is true about secondary markets in the joined States?A)In state of industry capitalization (total share value) of the this firm listed, the NASDAQ is the largest in the world and also the NYSE is the second largest. B)NASDAQ is one OTC (over-the-counter) market. C)Firms listed on the NASDAQ tend to be, top top average, larger in size, and also their shares trade much more frequently 보다 those traded on NYSE.D)In the joined States, most secondary market transactions space done end the counter.
Dealer markets are characterized by:A)no time-consuming find for a fair deal.B)a insurance of stimulate fulfillment due to the fact that the dealer stop an inventory of securities.C)improved industry efficiency since dealers provide consistent bid and ask prices for securities.D)All that the above characterize dealer markets.
Which of the following statements is not true around preferred stock?A)Preferred share represents ownership in the firm.B)Preferred stockholders space not standard for guaranteed dividend payments by the firm.C)Preferred share dividends are paid by the issuer through after-tax dollars. D)Preferred stock holders have limited voting privileges relative to common-stock owners.
Preferred share is sometimes treated favor a debt protection because:A)legally desired stock is a debt security.B)preferred dividend payments are comparable to bond attention payments and also are resolved in nature regardless of the firm"s earnings.C)preferred dividends room deductible indigenous taxable income similar to interest payment on bonds.D)preferred share holders receive a residual value and not a stated value.
Which that the complying with statements is true about the basic dividend valuation model?A)It means that the underlying value of a re-superstructure of share is established by the market"s expectation of the future dividends that the firm will certainly generate.B)It suggests that the value of a firm"s common stock have the right to be established only if the meant future dividends are infinite.C)It suggests that the worth of a expansion stock have the right to be determined by forecasting the future price that the stock.D)The version cannot be used to calculate the value of a common stock uneven the dividends exceed the firm"s expected expansion rate.
Cortez, Inc., is expecting come pay the end a dividend of $2.50 next year. After the it expects its dividend to grow at 7 percent for the next four years. What is the current value of dividends end the next five-year period if the compelled rate the return is 10 percent? (Do no round intermediate calculations. Round last answer to 2 decimal places.)A)$10.76B)$9.80C)$11.88D)$11.50
Which that the adhering to is the most common example the a zero-growth dividend stock?A)The typical stock that a firm in the biotechnology industry.B)The wanted stock that a utility company.C)The usual stock of a for sure in the health care industry.D)The typical stock of a firm in the information modern technology industry.
According to Kevin Proffitt of Northwestern Mutual, about what percent of representatives stay with the firm in five years?
The ________ date is the day at i beg your pardon the link issuer must repay the loan or borrowed funds.A) premiumB) endingC) completionD) maturityE) none of the above
As a young university graduate, your greatest investment ally isA) leverage.B) a windfall.C) tax-free investments.D) time.E) derivatives.
Your investment has actually averaged the adhering to returns the last three years: +22%, -8%, +13%. You space most most likely invested inA) corporate bondsB) REITSC) Treasury billsD) typical stock E) government bonds
Latisha invest $1,000 in XYZ stock. 2 years later she offered the stock for $1,200. During the time she own the stock, she received a complete of $90 in dividends. What was her full return ~ above this investment?A) 8%B) 20%C) 23.33%D) 28%E) no one of the above
You to buy an investment for $1,000 on which girlfriend earned $120 last year. The inflation rate during that time was 3%. What to be your real (arithmetic) price of return? A) 3%B) 9% C) 12%D) 15%E) none of the above
ccording come the slides in class, i m sorry of the following has the greatest return, and also which has actually the most variable return?a. Small stocks; little stocks b. Small stocks; large stocksc. Junk bonds; little stocksd. Junk bonds; junk bonds
Hostess and also Kodak freshly filed because that bankruptcy protection in an attempt to restructure your debts. One could assume that both that these providers experienced too lot ________ risk. A) businessB) interest rateC) financialD) liquidity
You have just to buy 10 shares of a stock offering at $50 every share. Because that time, the firm was found to be in violation that several eco-friendly laws and also has several major lawsuits outstanding. I m sorry of the complying with statements is most correct?A) You could lose up to your $500 investment.B) You could lose an ext than your $500 investment.C) you cannot lose your investment based on the action of the company.D) by owning stock in the company, girlfriend have also technically violated the law.E) no one of the above
When a company buys ago its own typical stock the is engaging in aA) stock split.B) share reissue.C) stock repurchase.D) stock repo.E) nobody of the above.
You purchase 100 share of Quantex in ~ $150 per share for a full investment that $15,000. After your purchase the stock had actually a 3 because that 1 split. How numerous shares perform you currently own and also how lot isyour original investment now worth?A) 100 shares and also $150 dollarsB) 300 shares and $15,000 dollars C) 100 shares and also $45,000 dollarsD) 300 shares and also $45,000 dollarsE) 300 shares and also $46,000 dollars
The dividend yield on a share of usual stock isA) obtainable at most huge companies.B) the quantity of yearly dividends split by the market price the the stock. C) the taxes you salary on the reinvested dividends.D) every one of the above.E) only A and B.

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DividendsA) are constantly paid, regardless of the company"s profitability.B) are always paid when the agency makes a profit. C) are never ever paid to common stockholders; only preferred stockholders obtain them.D) every one of the above are true.E) nobody of the above is true.
The dividend yield tells investors which of the following? A) What their portfolio is worth on the open up marketB) exactly how much in the method of a return they would obtain if the share price and the dividend level remain constantC) once the company will be releasing dividendsD) how much in total the firm has available to pay out in dividendsE) none of the above
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